Regardless of the industry in question, a company’s employees must always be properly protected. This is especially true in certain fields such as construction, transportation, electrical engineering, and logging, where fatal injuries are extremely common. When a worker falls gravely ill or sustains a severe injury, he (or she) could potentially become unable to work for a long period of time and consequently find him/herself in a difficult financial situation. This is why workers compensation insurance exists: to provide employees with any benefits they may need in cases like these.
Who Needs Workers Compensation Insurance?
Nearly every state mandates that businesses must acquire some type of workers compensation insurance policy. You should also know that workers compensation insurance protects both your employees and yourself. Ultimately, it’s important for virtually every employer to obtain this form of protection in order to avoid costly lawsuits or other legal disputes.
According to the Insurance Information Institute, net premiums written (excluding state funds) for workers compensation insurance in the United States in 2019 totaled $48.3 million. This figure marks a 7.3% increase from 2018.
What Does It Cover?
Workers compensation insurance can cover many things, although today we will focus on four benefits: medical bills, loss of income, physical and mental rehabilitation, and death benefits.
If one or several of your employees have fallen sick or been injured on the job, medical expenses can quickly accumulate and cause significant stress for the person responsible for paying these bills. Common examples of medical expenses include surgeries, prescriptions, and emergency room visits.
Obviously, the total amount that needs to be paid out will depend (in part) on the severity of the injury. Each state may also have a distinct set of laws and/or a commission or other governing body that dictates how medical bills must be paid out.
Loss Of Wages
An employee who suddenly contracts a terminal illness or who sustains a serious injury can lose a significant amount of earnings if he/she is forced out of work for several weeks (or even months). According to legal information website NOLO, the amount of workers compensation benefits you receive is a percentage of your wages at the date of the injury.
In several states, employees are eligible to receive up to 66.6% of wages earned. This lost income is paid twice a month, once per month or on a weekly basis depending upon the state’s guidelines.
A certain amount of physical (and sometimes mental) rehabilitation is often needed after suffering an injury. (Certain occupations and work environments can generate more anxiety and trauma than others).
The total cost of workers’ compensation insurance will depend on many factors, including the state you live in, the types of risks your organization deals with and the number of employees you manage.
A death benefit is defined as a payout to an individual listed as the beneficiary of a life insurance policy, pension or annuity. This disbursement is typically made after the insured person dies.
The policyholder generally decides how the insurer pays this type of benefit. The requirements of what must be paid out (and how) as part of workers’ compensation death benefits may vary by state. However, these requirements may include burial fees and weekly cash payments, among other things.
Speak With An Experienced Business Insurance Agency
Reach out to the experts at Southern State Insurance in Alpharetta, Georgia for more information on workers compensation insurance and its many benefits. Since our founding in 1992, we have grown to become one of the largest, privately-held insurance agencies in the Southeastern U.S. We work with nearly every major insurance carrier and are dedicated to helping our clients obtain optimal value.
At Southern State Insurance, we place a major emphasis on forming deep, long-lasting relationships and offer a wide variety of options. We are also proud to support causes that are dear to members of our local community. For businesses, our other insurance products you can benefit from include general liability insurance, business property, business auto, group health, cyber liability, and EPLI (employment practices liability insurance). Regardless of the size of your business and the industry you belong to, SSI’s insurance agents will always work tirelessly to help you obtain the best coverage. Call Southern State Insurance, Inc. today at (888) 971-6304 or contact us online to learn more about our products.